MTN Nigeria Communications Plc has reported a remarkable financial performance for the first quarter of 2026, with profit after tax more than doubling to N355.5 billion, up from N133.7 billion in the same period last year. This growth was fueled by strong increases in data consumption and digital financial services.
Revenue and Subscriber Growth
The company's service revenue jumped 41.8% year-on-year to N1.49 trillion, while total revenue reached N1.50 trillion for the three months ended March 31, 2026. This marks a significant turnaround from the loss-making position in 2024 and underscores MTN's dominant market position. The subscriber base grew by 2.3 million revenue-generating subscribers, reaching a total of 89.5 million.
Data Revenue Leads Growth
Data revenue surged 56.2% to N827.2 billion, becoming the primary growth driver. Active data users increased by 9.5% to 55 million, and data traffic expanded by 22.9%, with average usage per subscriber climbing to 14.3GB. Smartphone penetration rose to 66.2%, supporting higher consumption patterns.
Voice revenue, traditionally a key income source, grew 22.5% to N499.1 billion, supported by subscriber additions and pricing strategies.
Fintech Segment Expansion
The fintech segment was the fastest-growing, with revenue jumping 77.9% to N64.2 billion, driven by increased adoption of digital financial services and higher interest income on customer balances. However, the division faced regulatory disruption as MTN temporarily suspended its Xtratime airtime and data credit advance service in response to new digital lending regulations. The company is onboarding approved providers and expects to resume the service soon.
Fintech Restructuring
MTN Nigeria announced plans to restructure its fintech operations, with parent company MTN Group acquiring a 60% stake in MoMo Payment Service Bank and Y'ello Digital Financial Services, while MTN Nigeria retains 40%. The transaction, valued at N95.5 billion, implies a capital injection of N152.1 billion into the fintech companies. This move aims to reduce future funding obligations and strengthen balance sheet flexibility.
Operational Efficiency and Outlook
Operating expenses rose only 16.1%, well below revenue growth, improving operating leverage. EBITDA increased 68.1% to N828.3 billion, with margin expanding to 55.3%. Free cash flow grew 55.6% to N326.5 billion, despite a decline in cash equivalents due to increased investment. Capital expenditure nearly doubled to N390.3 billion as the company accelerated network investment.
CEO Karl Toriola noted that inflationary pressures were partly offset by a stronger naira. Looking ahead, service revenue growth is expected to normalize as prior tariff adjustments become fully annualized. The proposed fintech restructuring is subject to shareholder approval at the annual general meeting scheduled for April 30.
